To compute the variance, what should one do?
A. Square the standard deviation.
B. Take the square root of the standard deviation.
C. Double the standard deviation.
D. Divide the standard deviation by n-1.
To compute the variance, what should one do?
A. Square the standard deviation.
B. Take the square root of the standard deviation.
C. Double the standard deviation.
D. Divide the standard deviation by n-1.
Related questions
Topaz Company makes one product andhas set the following standards for materials and labor:
| DirectMaterials | Direct Labor | |||
| Standard quantity or hours per unit | ?pounds | 2.50 | hours | |
| Standard price or rate | ? perpound | $ | 8.50 | per hour |
| Standard cost per unit | ? | $ | 21.25 | |
During the past month, the companypurchased 6,700 pounds of direct materials at a cost of $17,085.All of this material was used in the production of 1,300 units ofproduct. Direct labor cost totaled $24,750 for the month. Thefollowing variances have been computed: |
| Materials quantity variance | $ | 1,120 | U |
| Total materials spending variance | $ | 555 | F |
| Labor efficiency variance | $ | 4,250 | F |
| Required: |
| 1. | Fordirect materials: |
| a. | Compute the standard price per poundfor materials. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) |
| Standard price | $ |
| b. | Compute the standard quantityallowed for materials for the month%u2019s production. (Round your intermediatecalculation to 2 decimal places.) |
| Standard quantity | pounds |
| c. | Compute the standard quantity ofmaterials allowed per unit of product. (Round your answer to 2 decimalplaces.) |
| Standard quantity | pounds per unit |
| 2. | Fordirect labor: |
| a. | Compute the actual direct labor cost per hour for the month.(Round your answerto 2 decimal places.) |
| Actual direct labor cost per hour |
| b. | Compute the labor rate variance.(Do not roundintermediate calculations. Round your answer to the nearest dollar.Indicate the effect of variance by selecting "F" for favorable, "U"for unfavorable, and "None" for no effect (i.e., zero variance).Input all amounts as positive values. Leave no cells blank - becertain to enter "0" wherever required.) |
| Labor rate variance | $ |
Topaz Company makes one product andhas set the following standards for materials and labor:
| DirectMaterials | Direct Labor | |||
| Standard quantity or hours per unit | ?pounds | 2.50 | hours | |
| Standard price or rate | ? perpound | $ | 8.50 | per hour |
| Standard cost per unit | ? | $ | 21.25 | |
During the past month, the companypurchased 6,700 pounds of direct materials at a cost of $17,085.All of this material was used in the production of 1,300 units ofproduct. Direct labor cost totaled $24,750 for the month. Thefollowing variances have been computed: |
| Materials quantity variance | $ | 1,120 | U |
| Total materials spending variance | $ | 555 | F |
| Labor efficiency variance | $ | 4,250 | F |
| Required: |
| 1. | Fordirect materials: |
| a. | Compute the standard price per poundfor materials. (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) |
| Standard price | $ |
| b. | Compute the standard quantityallowed for materials for the month%u2019s production. (Round your intermediatecalculation to 2 decimal places.) |
| Standard quantity | pounds |
| c. | Compute the standard quantity ofmaterials allowed per unit of product. (Round your answer to 2 decimalplaces.) |
| Standard quantity | pounds per unit |
| 2. | Fordirect labor: |
| a. | Compute the actual direct labor cost per hour for the month.(Round your answerto 2 decimal places.) |
| Actual direct labor cost per hour |
| b. | Compute the labor rate variance.(Do not roundintermediate calculations. Round your answer to the nearest dollar.Indicate the effect of variance by selecting "F" for favorable, "U"for unfavorable, and "None" for no effect (i.e., zero variance).Input all amounts as positive values. Leave no cells blank - becertain to enter "0" wherever required.) |
| Labor rate variance | $ |
Vitalite, Inc., produces a number of products, including abody-wrap kit. Standard variable costs relating to a single kit aregiven below: |
| StandardQuantity or Hours | StandardPrice or Rate | Standard Cost | ||
| Directmaterials | ? | $6.00 peryard | $ ? | |
| Direct labor | ? | ? | ? | |
| Variable manufacturingoverhead | ? | $2.00 perdirect labor-hour | ? | |
| Total standard costper kit | $46.80 | |||
During August, 530 kits weremanufactured and sold. Selected information relating to the monthâsproduction is given below: |
| MaterialsUsed | DirectLabor | Variable Manufacturing Overhead | ||
| Total standardcost* | ? | $7,420 | $1,484 | |
| Actual costsincurred | $14,100 | ? | $1,570 | |
| Materials pricevariance | ? | |||
| Materials quantityvariance | $ 1,020 U | |||
| Labor ratevariance | ? | |||
| Labor efficiencyvariance | ? | |||
| Variable overheadrate variance | ? | |||
| Variable overheadefficiency variance | ? | |||
| *For the month'sproduction. |
| The following additionalinformation is available for Augustâs production of kits: |
| Actual directlabor-hours | 880 | |
| Difference betweenstandard and actual cost per kit produced during August | $0.20 | U |
| Required: |
| 1. | What was the total standard cost of the materials used duringAugust?
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| 5. | What was the labor rate variance for August? The laborefficiency variance? (Do not round your intermediatecalculations. Indicate the effect of each variance by selecting "F"for favorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance)) | ||||||||||||
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| 6. | What was the variable overhead rate variance for August? Thevariable overhead efficiency variance?(Do not roundintermediate calculations. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance)) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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